Business News in Brief: Senior management is increasingly an old man’s game, research reveals

In other stories, Maersk sharholders are hit hard, ATP invests heavily in Danske Bank despite the bank talking to the US authorities, and the EU is all set to investigate Danish financial services authority

No country for old men – DI would like to see more young top execs (photo: US National Archives)

February 22nd, 2019 11:14 am| by Stephen Gadd

Research carried out by the confederation of Danish industry, Dansk Industri (DI), reveals that the number of managers in the private sector under the age of 40 has fallen significantly.

Since 2010, the proportion of private-sector executives over the age of 50 has risen from 35 to 44 percent, while the proportion of senior executives over 60 has gone up from 10.4 to 12 percent – at the expense of younger executives, reports DI Business.

Golden oldies
According to Kinga Szabo Christensen, DI’s director for leadership development and productivity, there are several possible explanations as to why there are more leaders over the age of 50.

People in general are living longer and an increasing number of people continue to work, which also makes an impact at a management level. “There’s no doubt that the way society in general is getting older is also having an effect on leadership,” she said.

Maersk concern posts disappointing figures
Maersk shareholders did not have an easy time of it last year. Accounts presented on Thursday show that in 2018 the A-shares lost 9.6 percent of their value and the B-shares 10.1 percent. All in all, the company has had 18 billion kroner wiped off its value, reports BT. Based on its assessment of the world economic situation, Maersk expects earnings this year to be similar to last year. The trade war between the US and China is one of the things that is causing the company most concern.

ATP investing heavily in Danske Bank
Despite the scandals relating to money-laundering, Danish pension fund ATP has been buying heavily into Danske Bank. Since the new year, ATP has bought 1.9 million shares, bringing its holdings up from 1.05 to 1.32 percent, reports BT. However, “there should not be any doubt that we look upon the money-laundering allegations with the utmost seriousness, and we’ve criticised the bank’s board for its lack of action on this,” said Christian Hyldahl, the former CEO of ATP.

Danske Bank in talks with US authorities
The spectre of money-laundering in Danske Bank’s Estonian branch just won’t go away, it seems. Yesterday the bank announced it was co-operating with the US Securities and Exchange Commission (SEC) over potentially criminal responsibility in relation to the Estonian bank scandal. Since October last year, the bank has also been ‘in dialogue’ with the US Department of Justice. The bank emphasises it is ‘co-operating with all the relevant authorities to get to the bottom of this matter’, but also has no information regarding when the SEC’s investigations will be completed.

EU to probe Danish financial services authority over Estonia scandal
On Monday this week, the European Banking Authority (EBA) opened a formal investigation into a possible breach of EU law by the Estonian Financial Services Authority and the Danish financial services authority Finanstilsynet in connection with money laundering activities linked to Danske Bank and its Estonian branch in particular. This follows a letter from the European Commission calling on the EBA to use its powers to examine whether there may have been a failure by the Estonian and Danish competent authorities to comply with their obligations under EU law.

Airbnb buys Danish start-up
Gaest.com, a Danish platform for renting meeting spaces for short periods of time, has just been acquired by the worldwide room rental company for holidaymakers, Airbnb. The acquisition marks Airbnb’s first big move into office spaces, reports Business Insider. Gaest.com, founded in Denmark in 2015 by CEO Anders Mogensen, will remain a separate app for the time being.

Jyske Bank offers new type of bond
A revolutionary new type of loan has just been launched by Jyske Bank that has zero interest over a ten-year period. The loan is primarily aimed at homeowners with a lot of equity in their property who perhaps need a loan for a new kitchen or bathroom. The bank has described the new loan as ‘historic’, and other financial institutions are expected to follow suit with similar lending schemes.